I consider this a bug, but after spending time on these forums I notice a lot of posts pertaining to personal story bugs getting attention in this subforum and so I’ll put it here for now.
The Norn story quest The Stone Sheath is buggy as heck. You have to obtain an item underwater, which acts like an environmental weapon that you pick up (a rock, a keg, etc.) and replaces your weapon skills. You then need to take it outside of the water to a drop off point. However, anytime you leave the water you lose the weapon altogether when your terrestrial weapon skills pop back up.
The only way to successfully complete it seems to be to very carefully inch forward towards land while underwater and manually drop the weapon at a point where you can get out of the water and pick it up again. It took me several tries because I was concerned I would go too far and lose it for the 4th time.
Then after successfully getting it out, the NPC doesn’t seem to recognize you’re at the correct location. I ran around the drop off location for some time before the NPC finally registered that I had reached the correct spot and allowed me to continue.
I did try to report this via the in-game bug feature, but there is no Sub-Area which remotely fits the type of bug it is so I wasn’t sure how to even do that.